7/31/2001 6:48:00 AM
BOTHELL, Wash., July 31 /PRNewswire/ — Microvision, Inc. (Nasdaq: MVIS),
a leader in light scanning technologies, today reported results for the second
quarter of 2001.
Quarterly results
For the three months ended June 30, 2001, Microvision reported a
consolidated net loss of $8.6 million or $.72 per share compared to a net loss
of $6.9 million or $.60 per share for the same period in 2000. Revenue for
the second quarter of 2001 was $1.8 million compared to $1.2 million for the
same period in 2000. For the six months ended June 30, 2001, the company
reported a consolidated net loss of $18.8 million or $1.57 per share compared
to a net loss of $12.0 million or $1.09 per share for the same period in 2000.
Revenue for the six months ended June 30, 2001 was $4.1 million compared to
$3.3 million for the same period in 2000. Consolidated results include
Microvision, Inc. and the company’s subsidiary, Lumera Corporation. For the
three months and six months ended June 30, 2001, the portion of the
consolidated loss attributable to Lumera was $265,000 or $.02 per share and
$2.6 million or $.21 per share, respectively.
The company, including Lumera, ended the second quarter with $42.8 million
in cash, cash equivalents and investment securities and a contract backlog of
$7.9 million.
“We are very pleased with the financial results for the second quarter and
the first half of 2001, both of which compare favorably with last year’s
results in these same periods,” said Microvision President and CEO, Rick
Rutkowski. “While our billings during the second quarter were slightly below
our objectives, our current contract backlog is quite substantial, and we have
a plan in place to “catch up” during the next two quarters to keep us on track
for the year. Early in the second quarter we were awarded a $7.5 million
contract by the U.S. Army to continue our work with Boeing on the Virtual
Cockpit Optimization (VCOP) and Aircrew Integrated Helmet System (AIHS)
Progams, and we anticipate the award of one or more additional development
contracts during the current period. We have made substantial progress during
the quarter against a number of key technical objectives, including those
relating to the commercial production of our Nomad display product and our
barcode scanning product. We also expect to report soon on the achievement of
key technical milestones relating to our contracted development and the
development of key component technologies. We have announced new partnerships
with clinical partners, begun a collaborative effort with Ford Motor Company
towards the development of a unique laser-scanning head-up display for
automotive applications, and delivered the first of our groundbreaking
Spectrum displays to the Cleveland Clinic. Reactions to the Spectrum display
have been outstanding, and we are enthusiastic about the potential for
significant new business opportunities relating to this platform. We continue
to be delighted with the data coming out of field trials of our wearable
display that quantify the significant performance and productivity gains
achieved through the Nomad display system’s ability to deliver information to
‘the point of task.’ We are looking forward to results of additional trials
in a variety of application areas and to establishing additional relationships
with distribution and application partners as we prepare for the launch of the
Nomad product.”
Quarterly highlights
During the second quarter, Microvision announced the award of an
additional $7.5 million contract extension from the U.S. Army to continue
development on the Virtual Cockpit Optimization Program (VCOP) and expand the
Aircrew Integrated Helmet System (AIHS) for use in attack and utility
helicopters. This represents the third year in a row the U.S. Army has
extended Microvision’s contract for work on this program.
The company also delivered a prototype Spectrum display unit, the
company’s full color, daylight readable, see-through display unit, to the
Cleveland Clinic Foundation. The Cleveland Clinic, Microvision’s first
customer for Spectrum, will focus on developing and evaluating applications in
an operating room environment.
The company announced successful field trials with its Nomad Personal
Display System. Microvision teamed with AvroTech to conduct the first private
pilot flight test evaluation of Nomad. Microvision’s heads-up display
technology, combined with AvroTech’s moving map display software, enabled
pilots to increase their time looking out of the cockpit by as much as 50%,
dramatically improving flight safety and pilot awareness. In addition,
mechanics from the American Medical Response Ambulance used Nomad coupled with
a voice-activated graphic user interface software provided by Tangis
Corporation, to create a voice activated electronic maintenance manual that
enabled repair and maintenance time on their ambulance fleet to be reduced by
almost 70%.
Microvision also announced that it will collaborate with Ford Research
Laboratory on the design and development of next generation display systems
for automotive use. Using Microvision’s light scanning display, the companies
will work together to design a display system that will allow the driver to
view transparent images for daytime navigation information as well as night
vision imagery by projecting the images off the windshield. In addition,
Microvision successfully demonstrated a small rear-projection display that is
daylight-readable and that has several potential applications in automobiles,
including a driver information center and reconfigurable instrument panel.
Subsequent events
Following the end of the quarter, Microvision announced two key management
additions. Bill Sydnes was named Chief Operating Officer and will lead the
company’s effort in sales and marketing, product development, and
manufacturing. Dr. V.G. Veeraraghavan, who joins the company as Vice
President of Research and Product Development, will be responsible for all
product development and engineering operations.
Conference Call
Microvision’s will host a conference call to discuss its second quarter
financial results at 8:00 a.m. PT today. Participants may join the conference
call by dialing 800-231-9012 ten minutes prior to the start of the conference.
The confirmation code is 725497. Additionally, the conference will be
broadcast over the Internet and can be accessed from the company’s web site at
www.mvis.com. A telephone replay of the call will be available through
midnight August 6, 2001 and can be accessed by dialing 888-203-1112. The
confirmation code is 725497.
About Microvision
Headquartered in Bothell, Wash., Microvision, Inc. is the developer of the
proprietary Retinal Scanning Display technology and a world leader in micro
miniature optical scanning technology for display and imaging applications.
The company’s technology has applications in a broad range of military,
medical, industrial, professional and consumer information products.
Additional information can be found at the company’s Web site at
http://www.mvis.com .
About Lumera
As a subsidiary of Microvision, Inc., Lumera is a world leader in the
development of electro-optic devices based on proprietary optical polymers.
The company plans to deliver superior and unique component solutions to
optical systems suppliers. Lumera plans to supply standard and custom
components to systems providers in multiple high-growth product categories.
Additional information can be found at Lumera’s Web site at
http://www.lumera.com .
Forward-Looking Statements Disclaimer
Certain statements contained in this release, including projections of
revenues, income, expenses, and loss, plans for product development, future
operations, and financing needs or plans, as well as statements containing
words like “believe,” “anticipate,” “estimate,” “intend,” “seek,” “expect,”
and other similar expressions, are forward-looking statements that involve a
number of risks and uncertainties. Factors that could cause actual results to
differ materially from those projected in the company’s forward-looking
statements include the following: market acceptance of our technologies and
products; our financial and technical resources relative to those of our
competitors; our ability to keep up with rapid technological change;
government regulation of our technologies; our ability to enforce our
intellectual property rights and protect our proprietary technologies; the
ability to obtain additional contract awards; the timing of commercial product
launches; the ability to achieve key technical milestones in key products; and
other risk factors identified from time to time in the company’s SEC reports,
including in its Annual Report on 10-K for the year ended December 31, 2000
and its Quarterly Reports on Form 10-Q.
Microvision, Inc.
Consolidated Balance Sheet
(In thousands)
June 30, Dec. 31,
2001 2000
(unaudited)
Assets
Current Assets
Cash and cash equivalents $8,811 $7,307
Investment securities, available-for-sale 34,036 33,410
Accounts receivable, net 614 1,033
Costs and estimated earnings in excess of
billings on uncompleted contracts 982 2,116
Current restricted investments -- 1,125
Other current assets 3,513 976
Total current assets 47,956 45,967
Long-term investment, at cost 624 624
Property and equipment, net 9,098 7,516
Restricted investments 903 951
Receivables from related parties 1,620 1,000
Other assets 1,835 114
Total assets $62,036 $56,172
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $1,442 $1,974
Accrued liabilities 3,337 2,359
Allowance for estimated contract losses 155 295
Billings in excess of costs and estimated
earnings on uncompleted contracts 46 419
Current portion of capital lease obligations 241 317
Current portion of long-term debt 55 52
Total current liabilities 5,276 5,416
Capital lease obligations, net of current
portion 134 182
Long-term debt, net of current portion 262 290
Deferred rent, net of current portion 250 242
Total liabilities 5,922 6,130
Commitments and contingencies -- --
Minority interest 18,568 --
Shareholders' Equity
Common stock 125,995 120,506
Deferred compensation (3,889) (4,378)
Subscriptions receivable from related
parties (323) (403)
Accumulated other comprehensive income 688 454
Accumulated deficit (84,925) (66,137)
Total shareholders' equity 37,546 50,042
Total liabilities and shareholders'
equity $62,036 $56,172
Microvision, Inc.
Consolidated Statement of Operations
(In thousands, except earnings per share data)
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
(unaudited) (unaudited)
Revenue $1,772 $1,176 $4,109 $3,286
Cost of revenue 1,081 884 2,643 2,352
Gross margin 691 292 1,466 934
Research and development
expense 8,285 4,522 16,352 8,119
Marketing, general and
administrative expense 3,303 2,999 7,004 5,339
Non-cash compensation expense 514 516 976 670
Total operating expenses 12,102 8,037 24,332 14,128
Loss from operations (11,411) (7,745) (22,866) (13,194)
Interest income 723 844 1,429 1,296
Interest expense (21) (31) (45) (108)
Loss before minority
interests (10,709) (6,932) (21,482) (12,006)
Minority interests in loss
of consolidated subsidiary 2,142 -- 2,696 --
Net loss $(8,567) $(6,932) $(18,786) $(12,006)
Net loss per share before
non-cash compensation expense $(0.68) $(0.56) $(1.49) $(1.03)
Non-cash compensation expense (0.04) (0.04) (0.08) (0.06)
Net loss per share - basic
and diluted $(0.72) $(0.60) $(1.57) $(1.09)
Weighted-average shares
outstanding - basic and
diluted 11,974 11,531 11,945 11,000
SOURCE Microvision, Inc.
CONTACT: investors, Brian Heagler, 425-415-6758, or
brian_heagler@mvis.com, or press, Matt Nichols, 425-415-6758, or
matt_nichols@mvis.com, both of Microvision, Inc./